4.1 The role of marketing

Question 1

Commercial marketing

Answer 1

Commercial marketing is the use of marketing strategies to meet the needs and wants of customers in a profitable way.

Question 2

Ethical code of practice

Answer 2

Ethicalcode ofpracticerefers to guidelines that help businesses to act in a moral way by considering what is ethically right or wrong (fromsociety’s point ofview).

Question 3

Market

Answer 3

A market isa placeor processwherebycustomers and suppliers trade. A market exists where there is demand for a particular product and where there is a willingness from businesses to supply these products.

Question 4

Market concentration

Answer 4

Marketconcentrationmeasures the degree ofcompetition that exists within a market by calculating the market share of the largest few firms in the industry.

Question 5

Market leadership

Answer 5

Market leadership refersto firms with the largest market share in a particular market.

Question 6

Market orientation

Answer 6

Market orientation is a marketing approach adopted by businesses that are outward looking by focusing on making products that they can sell, rather than selling products that they can make.

Question 7

Market share

Answer 7

Market share measures the value ofa firm’s sales revenues as a percentage of the total sales revenue in the industry.

Question 8

Market size

Answer 8

Market size refers to the magnitude of an industry, usually measured in terms of the value of sales revenue from all the businesses in a particular market, per time period.

Question 9

Marketing

Answer 9

Marketingisthe management processofpredicting, identifying and meeting the needs and wants of customers in a profitable manner.

Question 10

Marketing objectives

Answer 10

Marketing objectives are the specific marketing goals of an organization. The marketing objectives of for-profit (profit-seeking) organizations include increased sales revenue, market leadership and greater market share.

Question 11

Marketing strategies

Answer 11

Marketing strategies are the medium to long term plan to achieve a firm’s marketing objectives.

Question 12

Needs

Answer 12

Needs are the essential necessities that humans must have to survive, i.e. food, shelter, warmth and water.

Question 13

Product orientation

Answer 13

Productorientationisamarketingapproachusedbybusinesses that are inwardlooking as they focus on selling productsthat theycanmake, rather than making productsthat theycansell.

Question 14

Social marketing

Answer 14

Social marketing refers to anyactivity that seeks to influence socialbehaviourto benefit the target audienceand societyas a whole.

Question 15

Wants

Answer 15

Wants are human desires, i.e. things that people would like to have. Irrespective of a person’s income or wealth, all people have infinite wants.